News Pigs
Unprecedented price war on German pig market
The leading German VEZG listing is rising faster and faster. After the plus of 5 cents two weeks ago, and last week's 7 cents, the price is now taking an even bigger step. The German market leader Tönnies follows.
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In just a few weeks, the mood in the pig market has turned 180 degrees. After the erzeugergemeinschaften announcing the first increase in the quotation two weeks ago, there was still a lot of resistance from the slaughtering world, and they left the prices unchanged. However, the fence now seems to be off the dam and the price increases follow each other in rapid succession. Although the German slaughter world sounds like it is going way too fast.
Tight supply of pigs
In Germany, the shrinking pig population seems to be making itself felt more and more. In addition, the slaughterhouses now seem to be hardly bothered by corona perils and they can increase their capacity. Now that fewer pigs are available in Germany, Dutch traders are cautiously inquiring about animals. The trade expects that more pigs will cross the border in the coming weeks, especially because with the Dutch quotations lagging behind, it will also become interesting for pig farmers from a price point of view.
The fact that the Dutch slaughterhouses are lagging behind is probably due to the fact that they have recently filled the slaughter hooks too easily, it sounds like. However, that could change in the coming weeks if German processors start asking for more pigs on a structural basis.
Meat trade does not fully increase with purchase price
The meat trade is also on an upward trend. The whole carcass gained in value between €0,07 and €0,08 this week, according to the DCA mutations in pig parts. Hams, shoulders and necks in particular were sold more expensively. Sales seem to be improving, especially on the European mainland. In export, the situation remains quite difficult and there is less perception.
German slaughterhouses report having great difficulty with the significantly increased purchasing level. They indicate that such pluses in sales are by no means realised. According to a spokesperson, the listing is 'forced' to be raised. It is hoped for a faster improving meat trade in the coming weeks, with the reopening of catering in Europe and the grilling season approaching.
The German VEZG quotation will be increased by €0,18 to €1,50 per kilo slaughtered weight. Market leader Tönnies also increases the listing with the same change to €1,50 per kilo.